Providing current information and rate quotes from lenders specializing in home equity loans and second mortgages.|
Details: A home equity loan or second mortgage can provide tax deductible access to your home equity to pay off your debts, improve your home, or take cash for any purpose, without refinancing your existing mortgage.
Fixed rate home equity loans offer you consistent monthly payments for the life of the loan, regardless of any changes in the interest rates. Because home equity loans are placed in second lien position on your property title, there is no need to refinance your existing mortgage, so if you currently have a low first rate mortgage, it remains the same. If you have existing home equity financing, it must be paid off with the new loan, be sure to request a sufficient loan amount.
The interest portion of a loan on your primary residence can be tax deductible within the allowable guidelines. The current deduction is up to $100,000 with a maximum 100% of value.
Here are 3 Ways to save money with a home equity loan or second mortgage:
- Reduce rates and payments on all of your consolidated debts.
- Change the compound interest on your credit cards into one simple interest loan.
- Convert non-deductible interest on other debts into a new tax deduction.